Today I am headed to NYC. When you live in Chicago you can turn NYC into a day trip. It’s a huge advantage. In out and sleep in my own bed the same day but I digress.
I am going to the opening night of the Fin Tech Innovation Lab. During the day I am meeting some people but I still have a couple of openings so if you are reading this and want to meet for coffee I might be able to make it happen.
I am pretty excited about Fin Tech innovation. I am excited about it for a number of reasons. I can tick off a couple. 67% of the COGS of a bank, a big institution, or a big insurance company is in the back office. There are huge gains to be made by streamlining the back office of these kinds of institutions. Huge capital efficiency, lower costs which means more profits for the big institutions. That turns into either lower costs for customers because of competition, higher wages, or more investment into stuff which makes life even better for customers.
That’s all well and good but at humanity’s core, we are all market driven. Over and over again throughout the course of humanity, efficient markets have made our lives better-even without actual fiat currency to grease their gears. When we have clear, transparent efficient markets and streamlined companies interacting in those markets we drive the quality of living for humans up. Sure, the gains are uneven and not predictable but it’s progress.
Across the country, Fin Tech innovation labs are opening up. I think this is an awesome thing. In Des Moines, there is a great insurance accelerator. In Little Rock, there is a fin-tech accelerator. In Columbus, there is a new fin tech accelerator. In St. Louis, there is a fin-tech accelerator. There is more than one in NYC.
America has consistently been one of the most innovative countries in the world, and finance has been one of the most innovative industries. It’s an exciting time to be investing in it and talking to entrepreneurs. Fin Tech is a lot more than just cryptocurrency.